The regulation and deregulation of US airlines

This article looks at the evolution of airline regulation and deregulation in the United States and relates developments to the theories of regulation. The aim of federal regulation was to promote the public interest. However, it became evident during the 1970s that extensive economic regulation of airlines had failed to promote the public interest. On the contrary, some economists found that the benefits of such regulation were being captured by the airlines themselves. Recent trends show increasing concentration in the industry.